Magma Fincorp to buy GE's home loan portfolio

Magma Fincorp on Thursday announced that it would acquire home loan portfolios from GE Capital India to enter the affordable and middle-income housing finance sector. The company did not divulge financial details.

The Kolkata-based non-banking finance company signed definitive agreements to acquire GE Money Housing Finance and the entire home equity loan portfolios of GE Money Financial Services.

"These acquisitions, while strengthening Magma's presence in the retail lending space, also offer a platform for Magma to leverage its network in the rural and semi-rural India for its home loans foray and further expand its product offerings to its over 700,000 customers," said Sanjay Chamria, vice-chairman and MD, Magma Fincorp.

The acquisition is subject to relevant regulatory approvals. GE Money Housing Finance has loan assets of Rs 660 crore while the entire home equity loans portfolio of GE Money Financial Services is about Rs 940 crore.